INDIANA PERSONAL

AUTOMOBILE POLICY

ANY PERSON WHO, WITH INTENT TO DEFRAUD OR KNOWING THAT HE IS FACILITATING FRAUD AGAINST AN INSURER, SUBMITS AN APPLICA-

TION OR FILES A CLAIM CONTAINING FALSE OR DECEPTIVE STATEMENTS MAY BE GUILTY OF INSURANCE FRAUD.

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AGREEMENT We agree with you, in return for your timely pay-ment of premium, to insure you subject to the terms and conditions of this policy. We will insure you for the coverages and up to the limits of liability for which a premium is shown on the declarations page of this policy. We agree to insure you based upon the information you represented to us in your application for auto insurance. The declarations page and your appli-cation are part of this policy contract.

DEFINITIONS USED THROUGHOUT THIS POLICY In order to make this policy easier to understand, we have explained some key words that are used throughout this policy. These key words are in bold face print. Auto means a four wheel passenger, station wagon, or jeep type vehicle licensed for use on public roads including pickups, delivery or panel trucks and vans with a classification of 3/4 ton or less that is not used in any business or occupation, unless the auto qualifies under the business use definition. Auto accident is an unexpected and unintended event that causes bodily injury or property dam-age and arises out of the ownership, maintenance, or use of an auto. Bodily injury means physical harm, sickness or disease, including death, caused by an auto acci-dent and suffered by a person. Business use means the use of any auto to con-vey any operator between his/her place of employ-ment and another location during the course of the operator’s employment and at the direction of the operator’s employer. Mileage reimbursement shall not constitute pecuniary gain or commercial advan-tage. Business use shall not include any commer-cial use. Collision means the upset of your covered auto or its impact with another vehicle or object. Commercial use means any auto used for pecuni-ary gain or commercial advantage, including but not limited to: changing, distributing, transporting, and/or delivering of commercial tools, materials, sup-

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plies, and/or finished products, including but not limited to delivery of pizza, magazine, flowers, newspaper, mail or other business types of delivery. Commercial use also means any compensated use of an auto for snow or debris removal on roads or real estate, except at your residence. Commercial use also means car-rying of any person or property for a charge, including but not limited to nursery or school children, medical patients, migrant workers, or hotel/motel guests, but does not apply to shared expense car pools or any business use. Comprehensive means loss caused other than by colli-sion. Accidental glass breakage and loss or damage from missiles or falling objects, fire, theft, larceny, explosion, earthquake, windstorm, hail, water, flood, malicious mis-chief, vandalism, riot, civil commotion, or contact with a bird or animal is considered a comprehensive loss. Covered auto or your covered auto means any auto described on the declarations page and any owned or leased auto you replace it with. Your covered auto also means any additional auto, ownership of which you ac-quire during the policy period if we insure, under this pol-icy, all autos you own. However, the replacement auto or additional auto is insured ONLY if the Named Insured notifies us within thirty (30) days of acquisition of owner-ship. Prior to notification, a replacement auto is subject to the same coverage as the auto it replaces. Collision and comprehensive coverage does not apply to any addi-tional auto unless specifically requested by the Named Insured prior to a loss involving the additional auto. Your covered auto also means any trailer you own or are using. Physical damage coverage does not transfer to trailers. Your covered auto also means other autos you operate with the permission of the owner, but not for collision or comprehensive coverage. Any liability coverage we pro-vide with respect to an auto you do not own or lease shall be excess over and above any other collectible insurance covering the auto you are driving. Your covered auto does not include other autos owned or leased by you, furnished to or available for your regular use or any autos owned or leased by any resident of your household. A temporary replacement auto qualifies as a covered auto. Damages mean the cost of compensating those who suffer bodily injury or property damage from an auto accident. Declarations page is the form from us stating the pol-icy period, the types of coverage you have elected, the

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limit for each coverage, the cost for each coverage, the specific vehicles covered by this policy, the types of coverage for each vehicle, and other information applica-ble to this policy. Loss, losses means direct and accidental loss of or damage. Motor vehicle is a self-propelled land vehicle on wheels designed for use on public roads and not running on rails or tracks. Non-owned auto means any private passenger auto not owned or leased by you, furnished to or available for the regular use of you, or a resident, while in the custody of or being operated by you. A rented auto is not considered a non-owned auto. Occupying means in, on, getting in, or getting out of a covered auto. Property damage means physical damage to, destruc-tion of, or loss of use of tangible property. Resident means any person who lives in the same household of the Named Insured for longer than four-teen (14) consecutive days. Temporary replacement auto means any auto not owned or leased by you or a resident, while your cov-ered auto is being serviced or repaired, or if it has been stolen or destroyed. Trailer means a vehicle designed to be pulled by an auto. It also means a farm wagon or farm implement while being towed by an auto. A trailer is not a mobile home or a trailer used as an office, store, display, or passenger trailer. Use, using, used means any utilization of a motor vehicle as a vehicle including occupying, entering into and alighting from it. Vehicle – See Motor Vehicle. We, us, and our refer to Safe Auto Insurance Company. You, your, yourself means the individual(s) named on the declarations page as the Named Insured and any person who is a resident of the same household, ONLY if that person is listed as an additional driver on the declarations page.

WHAT YOU SHOULD DO IN THE EVENT OF A LOSS OR AN ACCIDENT

NOTICE OF AUTO ACCIDENT OR LOSS

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In the event of an auto accident or loss, you must report it to us as soon as reasonably possible. You can report your auto accident or loss 24 hours a day by calling toll-free: 1-800-SAFE-AUTO (1-800-723-3288) or 614-231-0200 The report must give the time, place and circumstances of the auto accident or loss, including the names and addresses of any injured persons and of any witnesses. You must also file a written report with the appropriate law enforcement agency within 24 hours of knowledge of the auto accident or loss. OTHER DUTIES You or any person claiming coverage under this policy must: 1. Cooperate with us in any matter concerning a

claim or lawsuit and promptly send us any legal papers received relating to the claim or lawsuit.

2. Submit to physical examination(s) at our expense by doctors we select as often as we may reasona-bly require and authorize us to obtain medical and other records.

3. Provide any written proofs of loss that we require. 4. Refuse to, except at your own expense, assume

any obligation or incur any expense other than medical and surgical care imperative at the time of the auto accident.

5. Attend hearings and trials as required. 6. Submit to examination(s) under oath upon our re-

quest. If you are claiming uninsured motorists coverage and a hit-and-run motor vehicle is involved, you must file a written report with the appropriate law enforcement agency within 24 hours of the auto accident. If you were occupying a motor vehicle at the time of the auto accident, you must make it available for our inspection. If you are claiming physical damage, you must take reasonable steps after the loss to protect the covered auto and its equipment from further loss. We will pay reasonable expenses incurred in providing that protec-tion. YOU MUST FILE A WRITTEN REPORT OF THE THEFT OR VANDALISM OF THE COVERED AUTO TO THE POLICE WITHIN 24 HOURS OF KNOWLEDGE OF THE OCCURRENCE. You must also allow us to inspect and appraise the damaged covered auto before its repair or disposal.

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FAILURE TO COMPLY WITH ANY OR ALL OF THE CONDITIONS ABOVE MAY RESULT IN OUR RE-FUSAL TO EXTEND TO YOU OR ANYONE ELSE RE-QUESTING COVERAGE ANY PROTECTION UNDER THIS POLICY FOR THE AUTO ACCIDENT OR LOSS.

PART I – LIABILITY COVERAGE INSURING AGREEMENT We will pay damages, other than punitive or exem-plary, for bodily injury or property damage for which you become legally responsible because of an auto accident. Liability coverage applies to you while driv-ing your covered auto and to you while driving an auto other than your covered auto, if you have per-mission from the owner to drive the auto. Liability cov-erage will not apply to you while driving an auto that is not listed on the declarations page and that is: 1. Owned or leased by you; or 2. Available for your regular use; or 3. Owned or leased by a resident of your household. Liability coverage will apply to any other person driving your covered auto with your permission, provided they are not a resident of your household and do not use your covered auto on a regular basis. We will provide liability coverage for an auto you rent from a car rental agency or garage, ONLY while your covered auto is being serviced or repaired, or if it has been stolen or destroyed. PLEASE NOTE THAT NO COVERAGE IS AFFORDED TO VEHICLES RENTED FOR REASONS OTHER THAN THOSE STATED ABOVE. Any liability coverage we provide with respect to an auto you do not own or lease shall be excess over and above any other collectible insurance covering the auto you are driving. ADDITIONAL BENEFITS These benefits are in addition to our limit of liability for damages. We will pay for the cost of investigating the auto accident and arranging for the settlement of any claim against you. We will also defend you, hire and pay a lawyer and pay all defense costs if someone sues you for damages because of an auto accident even if the accusations are not true. However, we have no duty to defend lawsuits for bodily injury and prop-erty damage not covered by this policy. We may inves-tigate and settle any claim or lawsuit as we deem ap-propriate. We will not be obligated to pay for the cost of any further investigation or arrangement for settle-

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ment or defend you further after we have offered to pay our entire limit of liability. We will pay up to $100 for the cost of bail bonds re-quired because of an auto accident, including related traffic law violations. The auto accident must result in bodily injury or property damage covered under this policy. If the person who sues you tries to tie up your property by an attachment, we will pay for a bond to release the at-tachment. However, we will not pay the premium for at-tachment bond amounts that are more than our limit of liability. If you lose a lawsuit that we are defending, we will pay the court costs, including appeal costs if we decide to appeal. We will also pay pre-judgment and post-judgment interest on the amount of the judgment up to the policy limits. We will pay this interest from the day the judgment is entered until we have offered the other party the amount of the judgment up to the full limits of liability available under this coverage. We will pay your expense for first aid to others at the scene of an auto accident involving an auto we insure. We will pay other reasonable expenses incurred at our request, including up to $25 a day for loss of earnings because of attendance at hearings or trials at our re-quest. PROTECTION FOR OTHERS Anyone with a valid driver license or valid driving privi-leges using your covered auto with the covered auto owner’s permission, and within the scope of such per-mission, who is not a named insured under a valid and effective auto insurance policy, has the same rights and obligations that you have under this coverage. How-ever, this protection is not afforded to any regular or occasional user of your covered auto or to any resi-dent of your household, unless that person is listed as an additional driver on the declarations page. Any change in regular operators or residents in your household must be reported to us immediately. WHO IS NOT COVERED Neither the United States of America nor any of its agencies is protected under this coverage. Anyone for whom the United States government may be held responsible under the Federal Tort Claim Act is not protected under this coverage. EXCLUSIONS IN ADDITION TO THE EXCLUSIONS LISTED HERE,

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THE EXCLUSIONS LISTED UNDER THE GENERAL PROVISIONS OF THIS POLICY ALSO APPLY. LI-ABILITY COVERAGE AND OUR DUTY TO DEFEND DO NOT APPLY TO BODILY INJURY OR PROPERTY DAMAGE: 1. Arising out of the ownership, maintenance or use

of any motor vehicle with less or more than four wheels.

2. Arising while occupying any motor vehicle used as a residence or premises.

3. Arising out of the loading or unloading of any vehi-cle.

4. To you or to property owned by, rented to, in charge of, or transported by you. However, this exclusion does not apply to your rented residence or rented private garage damaged by your covered auto.

5. Caused intentionally by you or at your direction. 6. Arising out of or in the course of employment. How-

ever, coverage does apply to domestic employee(s) unless benefits are payable or required to be provided for the domestic employee under a worker’s compen-sation law or similar law.

7. To your fellow employee(s) in the course of his/her employment, if such injury arises out of the use of an auto in the business of his/her employer. This exclusion does not apply to injuries for which you are legally liable.

8. Occurring while your covered auto is pulling a mobile home or a trailer used as an office, store, display or passenger trailer.

9. Arising out of the operation of farm machinery. 10. Assumed by you under any contract or agreement. 11. For any liability imposed upon you by statutes aris-

ing from your sponsorship of a minor for an opera-tor’s license.

LIMITS OF LIABILITY The limit of liability shown on the declarations page is the most we will pay per auto accident or loss regard-less of the number of claims made, covered autos, insured persons, lawsuits brought, vehicles involved in an auto accident, or premiums paid. Your declarations page shows a split limit: 1. The amount shown for “each person is the most we

will pay for all damages due to a bodily injury to one person; and

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2. Subject to the “each person” limit, the amount shown for “each accident” is the most we will pay for all damages due to bodily injury sustained by two or more persons in any one auto accident; and

3. The amount shown for property damage is the most we will pay for all property damage for which you become legally liable as a result of any one auto accident.

The bodily injury limit for “each person” includes the total of all claims made for such bodily injury and all claims derived from such bodily injury, including, but not lim-ited to, loss of society, loss of companionship, loss of services, loss of consortium, and wrongful death. No one shall be entitled to duplicate payments for the same elements of damages. Any payment to a person under this Part I shall be re-duced by any payment to that person under Part II – Excess Medical Expense Coverage for the same ele-ment of damages. A motor vehicle and attached trailer are considered one motor vehicle. Therefore, the limits of liability will not be increased for an auto accident involving a mo-tor vehicle which as an attached trailer. OTHER INSURANCE This insurance is primary for any auto owned or leased by you and that is described on the declarations page, or any additional auto or replacement auto we insure. If you are using a temporary replacement auto or non-owned auto, our liability insurance will be excess over any other collectible insurance. If more than one policy applies to an accident involving your covered auto, we will pay only our share of the loss. Our share is the pro-portion that our limit of liability bears to the total of all ap-plicable limits. If there is other liability insurance applicable on the same primary or excess basis as this coverage, we will pay only our share of the loss. Our share is the pro-portion that our limit of liability bears to the total of all applicable limits.

PART II – EXCESS MEDICAL EXPENSE COVERAGE INSURING AGREEMENT If you pay a specific premium for excess medical ex-pense coverage, excess medical expense coverage applies to you while occupying your covered auto. We will pay expenses incurred within one (1) year from the date of the auto accident or loss.

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This coverage applies to reasonable and necessary medi-cal, surgical, and dental treatment, professional nursing, hospital, x-ray, ambulance and funeral services and pros-thetic devices. This coverage also applies to reasonable and necessary treatment rendered in accordance with a legally recognized religious method of healing. THIS COVERAGE DOES NOT APPLY TO THAT AMOUNT PAID OR PAYABLE UNDER ANY HEALTH OR ACCIDENT INSURANCE AVAILABLE TO YOU REGARDLESS OF WHETHER THE OTHER COVERAGE IS PRIMARY, EX-CESS OR CONTINGENT. THIS COVERAGE DOES NOT APPLY TO CARE WHICH THE UNITED STATES GOV-ERNMENT OR ITS MILITARY SERVICES ARE RE-QUIRED TO PROVIDE TO EMPLOYEES, MEMBERS, OR DEPENDENTS. PROTECTION FOR OTHERS Anyone occupying your covered auto with your permis-sion has the same rights and obligations that you have under this coverage. WHO IS NOT COVERED IN ADDITION TO THE EXCLUSIONS LISTED HERE, THE EXCLUSIONS LISTED UNDER THE GENERAL PROVISIONS OF THIS POLICY ALSO APPLY. EX-CESS MEDICAL EXPENSE COVERAGE DOES NOT APPLY TO ANYONE SUSTAINING BODILY INJURY: 1. While occupying any motor vehicle having less

or more than four wheels. 2. While occupying any motor vehicle used as a

residence or premises. 3. While occupying a motor vehicle without a reason-

able belief that that person is entitled to do so. 4. Caused intentionally by you or at your direction. 5. During the course of employment if benefits are pay-

able or must be provided under a worker’s compensa-tion law or similar law.

6. From the operation of farm machinery. LIMIT OF LIABILITY The limit of liability shown for this coverage on the decla-rations page is the maximum we will pay for “each acci-dent” to cover injuries to one or more persons in any one auto accident or loss. This amount is the most we will pay regardless of the number of autos described on the declarations page, persons insured, claims, claimants, policies, or motor vehicles involved in the auto accident. Any amounts otherwise payable for expenses under this coverage shall be reduced by any amounts paid or pay-

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able for the same expenses under the liability coverage. No payments will be made unless the injured person or that person’s legal representative agrees in writing that any payment shall be applied toward any settlement or judgment that person receives under liability coverage. OTHER INSURANCE If there is other applicable auto medical payment insur-ance, we will pay only our share. Our share is the propor-tion that our limit of liability bears to the total of all applica-ble auto medical payments limits. Any insurance we pro-vide shall be excess over any other collectible insurance providing payments for medical or funeral expenses.

PART III – PHYSICAL DAMAGE COVERAGE INSURING AGREEMENT If you pay a specific premium for collision and compre-hensive coverage, we will pay for direct and accidental loss to your covered auto, less any applicable deductible shown on the declarations page for your covered auto. We do not cover physical damage on a temporary re-placement auto; however, physical damage coverage will transfer to an auto you rent from a car rental agency or garage while your covered auto is being repaired as a result of a covered loss. A covered loss is defined as a loss that occurs during our policy period in which our Physical Damage Coverage applies. PLEASE NOTE THAT NO COVERAGE IS AFFORDED TO VEHICLES RENTED FOR REASONS OTHER THAN THOSE STATED ABOVE. LOSSES NOT COVERED IN ADDITION TO THE EXCLUSIONS LISTED HERE, THE EXCLUSIONS LISTED UNDER THE GENERAL PROVISIONS OF THIS POLICY ALSO AP-PLY.PHYSICAL DAMAGE COVERAGE DOES NOT APPLY TO: 1. A loss occurring while your covered auto is used

as a residence or premises. 2. A loss caused to a camper body or trailer. 3. A loss while your covered auto is subject to any

bailment, lease, conditional sale, mortgage or other encumbrance not specifically declared and described on this policy.

4. A loss to any optional equipment not factory installed by the original auto manufacturer.

5. A loss to any of the following optional equipment whether or not factory installed by the original auto manufacturer: car telephone equipment, televisions or

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their accessories or antennas, radar or laser detection devices, home high fidelity equipment, two-way ra-dios, scanning monitor receivers, awnings, cabanas or equipment designed to provide additional living facilities.

6. A loss to wearing apparel or personal effects. 7. A loss caused intentionally by you or at your di-

rection. 8. A loss due to conversion or embezzlement by any

person in possession of your covered auto. 9. A loss while your covered auto is pulling a mobile

home or a trailer used as an office, store, display, or passenger trailer.

10. A loss resulting from manufacturer’s defects, wear and tear, freezing, mechanical or electrical break-down or failure, or road damage to tires. However, coverage does apply if the damage is the result of other losses covered by this policy.

LIMIT OF LIABILITY Our maximum limit of liability for losses is the actual cost to repair or replace the damaged property. Pay-ment will not exceed the actual cash value of the prop-erty at the time of the loss. If the loss is a part thereof, the payment will not exceed the actual cash value of such part at the time of loss nor what it would then cost to repair or replace the property or such part thereof with other of like, kind and quality. All payments are reduced by the applicable deductible shown on the declarations page. TRANSPORTATION EXPENSES We will pay up to $10 per day, to a maximum of $300, for transportation expenses incurred by you. This ap-plies only in the event of the theft of your covered auto. We will pay only transportation expenses in-curred during the period beginning 48 hours after the theft has been reported to us and the police, and end-ing when your covered auto is returned to use or we pay for its loss. RENTAL REIMBURSEMENT When there is a loss to one of your covered autos described on the declarations page for which a spe-cific premium charge indicates that rental reimburse-ment coverage is afforded, we will reimburse you for expenses you incur to rent a temporary replacement auto. This coverage applies only if the auto is with-drawn from use for more than 24 hours and the loss is caused by collision, or covered under the compre-hensive part of this policy. Our payment will be limited

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to that period of time reasonably required to repair or replace the auto. If your covered auto is stolen and not recovered or declared a total loss by us, we will pay up to five (5) days after we make an offer to pay for the loss. The most we will pay under rental reimburse-ment coverage is $20 per day to a maximum of $600. The most we will pay for rental reimbursement and transportation expense coverage in any one (1) occur-rence is $600. TOWING AND LABOR If you pay a specific premium for towing and labor costs, we will pay towing and labor costs incurred each time your covered auto is disabled, up to the amount shown on the declarations page as applicable to that vehicle. The most we will pay per occurrence is $40, not to exceed six (6) occurrences per 6-month policy period. We will only pay for labor performed at the place of disablement, provided disablement does not occur at your place of residence. PAYMENT OF LOSS We may pay for the loss in cash or we may repair or replace the damaged or stolen property. We may take all or part of the damaged property at the agreed or appraised value. Before a loss is paid or the property is replaced, we may return any stolen property to you at our expense with payment for any damage. We may settle any loss either with you or the owner of the property. PREMIUM EARNED ON TOTAL LOSS In the event there is a claim under any of the physical damage coverages for which a separate premium is shown on the declarations page results in the payment of a total loss, that portion of the premium that has not been fully earned as of the time of cancellation will be credited to you. NO BENEFIT TO BAILEE This coverage shall not directly or indirectly benefit any carrier or other bailee liable for loss to your covered auto. APPRAISAL If we and you do not agree on the amount of loss, either may demand an appraisal of the loss. In that event, each party will select a competent and disinterested appraiser. The two appraisers will select a third appraiser to decide any differences. Each appraiser will state separately the actual cash value and the amount of the loss. An award in writing by any two appraisers will determine the amount payable. Each party will pay its chosen appraiser and bear the expense of the third appraiser equally.

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We do not waive any of our rights under this policy by agreeing to an appraisal. OTHER INSURANCE If other insurance also covers the loss, we will pay only our share of the loss. Our share is the proportion that our limit bears to the total of all applicable limits.

PART IV–UNINSURED/UNDERINSURED MOTORISTS COVERAGE

INSURING AGREEMENT If you pay a specific premium for uninsured motorists or underinsured motorists coverage, we will pay dam-ages, other than punitive or exemplary or attorney fees, ONLY for bodily injury physically sustained by you which you are legally entitled to receive from the owner or operator of an uninsured motor vehicle or under-insured motor vehicle. We will pay the damages you suffer in an auto accident while occupying your cov-ered auto as a result of having been struck by an unin-sured motor vehicle or underinsured motor vehicle. The owner’s or operator’s liability for these damages must arise out of the ownership, maintenance or use of the uninsured motor vehicle or underinsured motor vehicle. Any judgment for damages arising out of a lawsuit brought without written consent is not binding on us. We will pay under this coverage damages caused by an auto accident with an underinsured motor vehi-cle only after the limits of liability under any applicable bodily injury liability bonds or policies have been ex-hausted by payments of judgments or settlements. ADDITIONAL DEFINITIONS USED ONLY IN THIS PART IV An Uninsured motor vehicle is a: 1. motor vehicle where there is no bodily injury pol-

icy or liability bond available at the time of the auto accident.

2. motor vehicle where there is insurance available at the time of the auto accident but the company writing the insurance is or becomes insolvent or denies coverage.

3. Hit-and-run motor vehicle that strikes you while you are occupying your covered auto, if neither the driver nor the owner of the hit-and-run motor vehicle can be identified.

An underinsured motor vehicle is a: 1. motor vehicle where there is a bodily injury policy

or liability bond available at the time of the auto

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accident with less than the limits of liability shown on the declarations page of this policy for underin-sured motorists coverage.

2. motor vehicle where there is a bodily injury policy or liability bond available at the time of the auto acci-dent but the limits of that policy or bond are reduced by payments to persons, other than persons insured, injured in the auto accident to less than the limit of liability for underinsured motorists coverage.

An underinsured motor vehicle is not an uninsured motor vehicle. PROTECTION FOR OTHERS Anyone occupying your covered auto, with the cov-ered auto owner’s permission has the same rights and obligations that you have under this coverage. Anyone that is entitled to recover damages for care or loss of services, because of bodily injury sustained by you or anyone occupying your covered auto, with the covered auto owner’s permission has the same rights and obligations that you have under this cover-age. THOSE NOT PROTECTED IN ADDITION TO THE EXCLUSIONS LISTED HERE, THE EXCLUSIONS LISTED UNDER THE GENERAL PROVISIONS OF THIS POLICY ALSO APPLY. THIS COVERAGE DOES NOT APPLY TO: 1. Bodily injury to you which is caused by your spouse

or a resident of your household. 2. You, if you or your legal representative settles a

claim without our consent. This coverage does not apply to an uninsured motor vehicle or underinsured motor vehicle: 1. Owned or leased by you, furnished to or available

for your regular use, unless said motor vehicle is listed on the declarations page.

2. Owned or operated by a self-insurer within the meaning of any motor vehicle financial responsi-bility law, motor carrier law or similar law.

3. Owned by any governmental authority or agency. 4. Operated on rails or crawler-treads. 5. Which is a farm type tractor or equipment designed

for use principally off public roads, while not on public roads.

6. Used as a residence or premises.

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7. Not required to be registered as a motor vehicle. LIMITS OF LIABILITY The limit of uninsured motorists or underinsured motor-ists bodily injury liability coverage shown on the decla-rations page for “each person” is the maximum we will pay for bodily injury sustained by one person in any one auto accident, including all injuries and damages to others resulting from this bodily injury. Subject to this limit of “each person”, the limit of uninsured motor-ists or underinsured motorists bodily injury liability cov-erage shown on the declarations page for “each acci-dent”, is the maximum we will pay for bodily injury sustained by two or more persons in the same auto accident. This is the most we will pay regardless of the number of autos described on the declarations page, persons insured, claims, claimants, policies, or motor vehicles involved in the auto accident. However, the limit of uninsured motorists or underinsured motorists bodily injury liability coverage shall be reduced by all sums paid by or on behalf of persons or organizations who may be legally responsible for your bodily injury. This includes all sums paid under the liability coverage of this policy. All claims made under this Part IV of the policy, including all derivative claims of whatever nature such as loss of society, loss of services, and/or loss of consortium, shall be deemed to be merged and consolidated into the stated limit of liability for one person under the “each person” limit of liability specified on the declarations page. PAYMENT OF DAMAGES We may pay you, your legal representative or anyone authorized by law to receive payment. Any amounts payable for damages under this cover-age will reduce any amount that person is entitled to recover for the same damages under the liability cover-age of this policy. No one will be entitled to duplicate payments for the same elements of damages. TRUST AGREEMENT When we pay you damages under this coverage, you or your legal representative must agree in writing to repay us out of any damages recovered from anyone responsi-ble for your injuries. You or your legal representative must also agree in writing to hold in trust and preserve for us all rights of recovery. At our request, you must take any necessary action to recover the payments we have made under this coverage.

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You must do so in your own name and through a repre-sentative we select. Any payments made under this cov-erage and recovered from the at-fault party must be repaid to us. Expenses of recovery will be repaid to us out of any damages recovered. OTHER INSURANCE If there is other applicable uninsured motorists or un-derinsured motorists coverage, we will pay only our share of the loss. Our share is the proportion that our limit of liability bears to the total of all applicable limits. Any coverage we provide shall be excess over any other uninsured motorists or underinsured motorists coverage, except for bodily injury to you when occu-pying a covered auto. If there is other applicable insurance available under more than one policy, any recovery for damages for bodily injury sustained by a person insured may not exceed the highest of the applicable limit of any one vehicle under this insurance or any other insurance. We will not pay for any damages which would dupli-cate any payment made for damages under any other insurance.

PART V – UNINSURED MOTORISTS PROPERTY DAMAGE

INSURING AGREEMENT If you pay a specific premium for uninsured motorists property damage coverage as shown on the declara-tions page, we agree to insure you as follows: We will pay for property damage to your covered auto, less a $250 deductible, which you are legally entitled to recover from the owner or operator of an uninsured motor vehicle up to the limit of liability for this coverage as shown on the declarations page. The property damage must be caused by an accident and arise out of the ownership, maintenance or use of an uninsured motor vehicle. THE PROPERTY DAMAGE MUST BE CAUSED BY ACTUAL PHYSICAL CONTACT BETWEEN YOUR COVERED AUTO AND AN UNIN-SURED MOTOR VEHICLE WHOSE OWNER OR OP-ERATOR AND LICENSE PLATE HAVE BEEN IDENTI-FIED. DEFINITIONS USED ONLY IN THIS PART V Property damage means damage to or the destruction of your covered auto but does not include damage to per-sonal property contained in your covered auto. This cov-erage is subject to a $250 deductible. Property damage

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does not include loss of use of your covered auto. Uninsured motor vehicle means a motor vehicle that is: 1. Not insured by a liability bond or policy at the time

of the accident; or 2. Insured by a liability bond or policy at the time of the

accident but the insurance company writing the insur-ance denies coverage or is or becomes insolvent.

However, uninsured motor vehicle does not mean: 1. A vehicle whose owner or operator and license

plate have not been identified; or 2. A vehicle owned by a governmental unit or agency;

or 3. A vehicle owned or operated by a person qualify-

ing as a self-insurer under any applicable motor vehicle law; or

4. Your covered auto; or 5. A vehicle owned or leased by you, furnished to or

available for your regular use or the regular use of a resident of your household.

EXCLUSIONS IN ADDITION TO THE EXCLUSIONS LISTED HERE, THE EXCLUSIONS LISTED UNDER THE GENERAL PROVISIONS OF THIS POLICY ALSO AP-PLY.COVERAGE UNDER THIS PART V DOES NOT APPLY TO: 1. A loss caused to a camper body or trailer. 2. A loss to any optional equipment not factory in-

stalled by the original auto manufacturer. 3. A loss to any of the following optional equipment

whether or not factory installed by the original auto manufacturer: car telephone equipment, televisions or their accessories or antennas, radar or laser de-tection devices, home high fidelity equipment, two-way radios, scanning monitor receivers, awnings, cabanas or equipment designed to provide addi-tional living facilities.

4. A loss to wearing apparel or personal effects. 5. A loss caused intentionally by you or at your di-

rection. 6. A loss resulting from prior loss or damage, manufac-

turer’s defects, wear and tear, freezing, mechanical breakdown or failure or road damage to tires.

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7. Property damage sustained by you if you or your legal representative makes a settlement or prose-cutes an action to judgment without our consent.

LIMIT OF LIABILITY Our limit of liability for property damage under this Part V shall not exceed the lowest of: 1. The actual cash value of the covered auto at the

time of the loss; or 2. The amount necessary to repair or replace the cov-

ered auto with other of like, kind and quality; or 3. The applicable limit of liability shown on the decla-

rations page. Any loss payable under this Part V shall be reduced by a $250 deductible. OTHER INSURANCE Any insurance, which we afford to a loss covered under this Part V shall be excess over any other applicable insurance.

GENERAL PROVISIONS VALID DRIVER LICENSE No coverage is afforded under any section of this policy if the covered auto is being operated by a person who is not a qualified, licensed driver, or is without a valid driver license, or whose driver license is expired, re-voked or suspended, or is in violation of any condition of their driving privileges, or is without privileges to drive for any reason. GENERAL EXCLUSIONS Coverage and our duty to defend under Part I – Liabil-ity, Part II – Excess Medical Expense, Part III – Physi-cal Damage, Part IV – Uninsured/Underinsured Motor-ists, and Part V – Uninsured Motorists Property Dam-age does not apply to a loss: 1. Arising while your covered auto is being operated

by a person who is listed as an excluded driver on the declarations page; however, when applicable, this policy will comply with Indiana Code 27-1-13-7.

2. Arising while your covered auto is being operated by a resident of your household or by a regular user of your covered auto unless that person is listed as an additional driver on the declarations page; however, when applicable, this policy will comply with Indiana Code 27-1-13-7.

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3. Arising out of the ownership, maintenance or use of any motor vehicle, other than your covered auto, which is owned or leased by you, furnished to or available for your regular use.

4. If your covered auto is used without the covered auto owner’s permission, or outside the scope of that permission.

5. If your covered auto is being used to flee or elude law enforcement official(s).

6. If your covered auto is used in the commission of any felony, including theft of your covered auto.

7. If your covered auto is used in any illicit trade or transportation.

8. Arising from any prearranged or organized race, speed contest or performance contest.

9. Arising out of the ownership, maintenance, or use of any motor vehicle during the course of any business or employment, unless you have paid a specific premium for business use coverage.

10. If you are operating any motor vehicle in a com-mercial use capacity.

11. Arising out of an auto business operation, including but not limited to, the selling, repairing, servicing, testing, storing, or parking of motor vehicles.

12. Arising out of or due to the use of the covered auto for the transportation of any explosive substance, flammable liquid, or similarly hazardous material.

13. Caused by war (declared or undeclared), civil war, insurrection, rebellion, revolution, nuclear reaction, radiation, radioactive contamination, or any conse-quence of any of these.

14. To anyone protected at the time of the auto acci-dent by an atomic or nuclear energy liability insur-ance contract. The reason for this is that by law such policies protect all persons involved in the auto accident, regardless of fault.

15. For which the United States Government is liable under the Federal Tort Claims Act.

16. Arising during the period of time between the can-cellation date and time and the reinstatement date and time.

BUSINESS USE COVERAGE If you pay a specific premium for business use cover-age, we will pay for direct and accidental loss that oc-curs while you are operating your covered auto and

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traveling between locations during the course and within the scope of your employment, subject to the coverages shown on your declarations page and all the terms, provisions, conditions and exclusions de-scribed throughout this policy. OUR RIGHT TO RECOVER PAYMENT In the event of any payment under this policy, we have the right to recover from anyone who may be held re-sponsible. You and anyone we protect must sign and deliver to us any legal papers relating to that recovery, do whatever else is necessary to help us exercise those rights, and do nothing after a loss to prejudice our rights. Our right to recover does not apply if we make pay-ment under physical damage coverage against anyone using your covered auto with a reasonable belief that that person is entitled to do so. When you and anyone we protect have been paid damages by us under this policy and also recovers from another, the amount recovered from the other shall be held by you in trust for us and be reimbursed to us to the extent of our payment. In the event we become obligated to make a payment because of a loss for which there would be no cover-age under any terms, conditions or provisions of this policy, then you must reimburse the company for any payment or expense incurred by us. SALE OF COVERED AUTO No coverage is afforded under any section of this policy if your covered auto is in the care, custody or control of anyone, other than yourself, for the purpose of sell-ing your covered auto. FINANCED VEHICLES If a lienholder or additional interest is shown on the declarations page, we may pay any comprehensive or collision loss to: 1. You and/or the additional interest and the repair

facility; or 2. You and/or the additional interest and such lien-

holder as their interest may appear, when we find it is not practical to repair your covered auto; or

3. The lienholder or the additional interest, as to their interest, if your covered auto has been repos-sessed.

A lienholder or additional interest’s benefits under this policy are limited to and may not exceed those benefits and/or rights to which the Named Insured is entitled.

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LIENHOLDER DEDUCTIBLE The deductible amount that applies to losses adjusted and payable to the lienholder for their interest shall be no more than $250 per loss on comprehensive and colli-sion coverage. This deductible will apply ONLY when your covered auto is a total loss, and when loss or dam-age causes it to be repossessed by or surrendered to the lienholder. All other losses shall be subject to the deducti-ble amounts shown on the declarations page. POLICY PERIOD AND TERRITORY This policy applies only to auto accidents and losses during the policy period shown on the declarations page. In the event that this policy is cancelled for non-payment and we accept your late payment and rein-state your policy, we will not cover any loss or auto accident which occurs during the period between the cancellation date and time and the reinstatement date and time. Your policy expiration and/or renewal date will remain unchanged by any reinstatement by us. Coverage applies to your covered auto while it is within the United States of America, its territories or possessions and Canada, or while your covered auto is being transported between their ports. TRANSFER OF THIS POLICY This policy cannot be transferred to any person or or-ganization without our written consent. However, if the Named Insured dies, this policy will provide protection until the end of the policy period (provided premium due has been paid) for the legal representative and those persons who were protected on the date of death. NUMBER OF OWNED VEHICLES COVERED Four is the maximum number of covered autos that may be listed on this policy. CHANGES IN YOUR POLICY This policy contains all the agreements between you and us. Notice to any agent or knowledge possessed by any agent or other person shall not change or effect a waiver on any of our rights under this policy. Only the Named Insured appearing on the declarations page may request changes to the policy. Any changes that increases the liability of the Company must have prior Company approval, unless otherwise noted by this pol-icy. This policy can only be changed by an endorsement issued by us. If a change requires a premium adjust-ment, we will adjust the premium as of the effective date of change. We will automatically give you the benefits of any extension or broadening of this policy

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effective on the date the Indiana Department of Insur-ance approves the use of the change and if the change does not require additional premium. The premium for each term of this policy is determined by information in our possession at the inception date of that term. Any change in this information which would affect the rating of your policy gives us the right to make an additional charge or refund on a pro-rata basis. REGARDLESS OF PREMIUM CHANGE, YOU HAVE A DUTY TO INFORM US OF ANY SUCH CHANGE (including but not limited to change in: vehi-cles, use of vehicles, Named Insured’s and additional driver’s occupations, marital status, garaging address, residents in household, children eligible to drive, driver’s physical condition, medication or moving out of the State of Indiana). CANCELLATION DURING THE POLICY PERIOD The Named Insured appearing on the declarations page may cancel this policy by returning it to us or by advising us in writing the future date and time the Named Insured wishes the cancellation to be effective. The earned premium will be computed on a pro-rata basis. This means that we will retain premium for only those days that you were protected. However, a $25.00 cancellation charge will be applied to a policy canceling per Named Insured’s written request, except insured deceased, interstate rewrite, and total loss can-cellations. This fee is in addition to any application, bill-ing, late, and SR-22 filing fees already charged. We will not refuse to issue or cancel this policy solely because of your age, sex, race, color, creed, religion, national origin, ancestry, marital status, or residence within the State of Indiana. We may cancel this policy by mailing or delivering no-tice of cancellation to you at the address shown on the declarations page. The earned premium will be com-puted on a pro-rata basis. The effective date of cancel-lation stated in a notice is the end of the policy period. Proof of mailing a notice of cancellation shall be suffi-cient proof of notice. Upon cancellation, you may be entitled to a premium refund. If the refund is less than $10.00, no refund will be sent unless you specifically request it. If you owe us less than $10.00, we will not pursue the amount due. We have the right to cancel this policy for any reason within the first fifty-nine (59) days from its inception, with at least a ten (10) day notice of cancellation. If we do not cancel your policy within the first fifty-nine

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(59) days, then it can only be cancelled for one of the following reasons: With at least a ten (10) day notice of cancellation for: Nonpayment of premium. With at least a twenty (20) day notice of cancellation for: 1. Misrepresentation by you of any material fact in the

submission of a claim under this insurance; or 2. Loss of driving privileges through suspension, revoca-

tion, or expiration of your operators license, or any additional driver's operators license; or

3. Changing your place of residence, or license or registration of your covered auto to a state other than Indiana; or

4. Violations of any terms or conditions of this policy; or

5. If you or any other insured driver under this policy: a. Is under the treatment for epilepsy or heart dis-

ease and does not produce a certificate from a physician testifying to the operator's unqualified ability to operate a motor vehicle safely; or

b. Uses drugs or alcoholic beverages to excess. RENEWAL PROVISIONS We will not refuse to renew this policy solely because of your age, sex, race, color, creed, religion, national origin, ancestry, marital status, or residence within the State of Indiana. Subject to our consent, you may renew this policy. When we consent to renew this policy, you must pay the renewal premium in advance. We will mail you a notice telling you when your premium must be paid. This notice also serves as a ten (10) day notice of can-cellation. If you fail to pay the required premium when due, your policy will be cancelled for non-payment of pre-mium. We have the right not to renew your policy with at least a twenty (20) day notice of non-renewal. If we decide not to renew your policy, we will mail a non-renewal notice to you at the address shown on the declara-tions page. Proof of mailing a notice of non-renewal shall be proof of notice. Once a non-renewal notice has been mailed to you, you still have an obligation to make premium payments when due. Failure to pay any such payments will result in the cancellation of your policy effective the cancella-

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tion date and time that appears on the Notice of Pay-ment Due/Notice of Cancellation. No late payments will be accepted and coverage will not be extended to the non-renewal date. BANKRUPTCY We are not relieved of any obligation under this policy because of your bankruptcy or insolvency. FRAUD OR MISREPRESENTATION This policy was issued in reliance on the information provided on your insurance application. We may void coverage under this policy if you or an insured person have knowingly concealed or misrepresented any ma-terial fact or circumstance, or engaged in fraudulent conduct, at the time application was made. We may cancel this policy if you have knowingly con-cealed or misrepresented any material fact or circum-stance, or engaged in fraudulent conduct, in connection with the presentation or settlement of a claim. No coverage will be provided to any person who has knowingly concealed or misrepresented any material fact or circumstance, or engaged in fraudulent conduct, in connection with the presentation or settlement of a claim. We may void this policy for fraud or misrepresentation even after the occurrence of an accident or loss. This means that we will not be liable for any claims or dam-ages which would otherwise be covered. PREMIUM PAYMENT If your “initial” premium payment is by check, draft or any remittance other than cash, coverage under this policy is conditioned upon the check, draft, or remit-tance being honored upon presentment to the financial institution upon which it is drawn. If the check, draft, or remittance is not honored upon presentment, this policy will be deemed void from its inception, as if the policy never took effect. This means that we will not be liable under this policy for any claims or damages that would otherwise be covered if the check, draft, or remittance had been honored upon presentment to the financial institution upon which it is drawn. If your “installment” or “renewal” payment is by check, draft or any remittance other than cash, coverage un-der this policy will continue provided the check, draft, or remittance is honored upon presentment to the finan-cial institution upon which it is drawn. If the check, draft, or remittance is not honored upon presentment, this policy will be cancelled at the date and time shown on the Notice of Payment Due/Notice of Cancellation that would have applied to the payment that was not hon-

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ored. LATE PAYMENT In order to continue your coverage, your installment or renewal payment must be received in our office prior to the cancellation date and time shown on your Notice of Payment Due/Notice of Cancellation or Renewal No-tice/Cancellation Notice. Payment effective dates and times vary per the payment method: 1. Payments made through the Safe Auto Phone Pay

system or money wiring services are effective the date and time that appears on the check that prints in our office.

2. Post Office mailed payments are effective the day after the postmark date on the payment envelope at 12:01 A.M.

3. Post Office mailed payments with no legible postmark date or delivered via Federal Express, Airborne Ex-press, or other similar carriers are effective the day we receive the payment at 12:01 A.M.

4. Walk-in payments are effective the date and time the Safe Auto cashier receives the payment.

If the payment effective date and time is prior to the cancellation date and time shown on your Notice of Payment Due/Notice of Cancellation, the policy will not cancel. If your payment is effective after the cancella-tion date and time, your policy will cancel as of the date and time shown on your Notice of Payment Due/Notice of Cancellation that applies to that payment. We will accept a payment effective after the cancella-tion date and time and reinstate your policy, as long as the payment’s effective date and time is no more than thirty (30) days after the cancellation’s effective date and time. In the event we accept your late payment and reinstate your policy, we will not cover any loss or auto accident which occurred during the period between the cancellation date and time and the reinstatement date and time. In the event that this policy is reinstated, it will reinstate under the same policy terms, limits, conditions, elections, and exclusions which were in effect prior to cancellation. Your policy expiration and/or renewal date will remain un-changed by any reinstatement by us. We reserve the right not to accept late payments on policies that have cancelled. We will not accept any payment that has a payment effective date and time that is more than thirty (30) days after the cancellation date and time.

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FINANCIAL RESPONSIBILITY LAWS When we certify this policy as proof of financial responsi-bility, this policy will comply with the law to the extent required. You must reimburse us if we make a payment that we would otherwise not have made had this policy not been certified as proof of financial responsibility. SUIT AGAINST US We may not be sued unless there is full compliance with all the terms of this policy. We may not be sued under the liability coverage until your obligation to pay is finally determined either by judgment against the person after actual trial or by written agreement of the person, the claimant and us. No one shall have any right to make us a party to a lawsuit to determine your liability. Any lawsuit seeking recovery under Part IV, Uninsured/Underinsured Motorists Coverage, must be filed within two (2) years from the date of the auto acci-dent. PUNITIVE OR EXEMPLARY DAMAGES IT IS AGREED THAT THIS INSURANCE SHALL NOT AP-PLY TO PUNITIVE OR EXEMPLARY DAMAGES. PAY-MENT FOR OR DEFENSE OF ANY CLAIM, SETTLE-MENT, JUDGMENT OR OTHER AWARD OF PUNITIVE OR EXEMPLARY DAMAGES IS HEREBY SPECIFICALLY EXCLUDED. TWO OR MORE AUTO POLICIES If this policy and any other auto insurance policy issued to you by us apply to the same auto accident, the maximum limit of our liability under all the policies shall not exceed the highest applicable limit of liability under any one policy, even though separate premiums have been paid. You cannot stack coverages or policies. AUTOMATIC TERMINATION If you obtain insurance on your covered auto, or if a person other than you becomes the owner of your covered auto, any coverage provided by this policy will terminate as to that auto on the effective date and time of the new policy or the legal transfer of that auto. POLLUTION EXCLUSION It is agreed that this insurance does not provide coverage for you or others for bodily injury, property damage, or financial loss, including the decrease of property value arising out of or resulting from the intentional or unintentional, actual, alleged, or threatened discharge, release, dispersal, seepage or escape of pollutants into or upon land, the atmosphere or any water course, body of water or underground water of any kind or any environmental damage or pollution. Pollutants means any solid, liquid, gaseous, or thermal substance, irritant

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or contaminant including smoke, vapor, soot, fumes, acids, alkalis, toxic chemicals and waste. Waste in-cludes, but is not limited to, materials to be recycled, reconditioned or reclaimed, known or unknown to con-tain pollutants or result in environmental damage. It is agreed that this insurance does not provide cover-age for any loss, cost, liability, or expense of any kind, including attorney’s fees and costs and/or expense of litigation, arising out of any judicial, administrative or governmental order, direction or request that you test for, monitor, clean up, remove, contain, treat, detoxify, or neutralize pollutants or environmental damage.

NAMED DRIVER EXCLUSION If any person is specifically listed as an excluded driver on your application or declarations page, then we will not provide coverage for that excluded driver for any claim arising from an accident or loss that occurs while the covered auto is being operated by that ex-cluded driver. The titled owner of the insured vehicle(s) cannot be listed as an excluded driver on the applica-tion or declarations page.

NAMED OPERATOR ENDORSEMENT (NON-OWNED AUTOMOBILES)

As used in this part, the Named Operator is defined as ONLY the Named Insured listed on the declarations page of this policy. We agree that this insurance as is afforded by this policy for Bodily Injury, Property Dam-age, Personal Injury Protection, Excess Medical Ex-pense, and Uninsured/Underinsured Motorists cover-ages (provided these coverages are listed on the dec-larations page and a premium shown for them) applies with respect to the use of any non-owned auto by the Named Operator, subject to the following provisions: 1. Any provisions of this policy which extends cover-

age to other than the Named Operator are hereby eliminated.

2. We will insure any newly acquired auto only if the Named Operator notifies us within thirty (30) days of the acquisition.

3. No coverage is afforded under this policy for any auto owned in full or in part or registered in the name of the Named Operator or any resident of the Named Operator’s household. This exclusion does not apply to any newly acquired auto by the Named Operator as defined in paragraph No. 2 above.

4. No coverage is afforded under this policy for any

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auto used during the course of any business or employment, or when used in an Auto Business Operation, including but not limited to the selling, repairing, servicing, testing, storing, or parking of motor vehicles.

5. No coverage is afforded under this policy for any auto used as a public or livery conveyance or in the business of trucking or hauling for others. 6. The provisions of this policy in reference to other

valid and collectible insurance are hereby elimi-nated and it is agreed that if there exists, at the time of any loss covered by this policy, any insur-ance issued to, taken out by or effected on behalf of anyone other than the Named Operator and un-der the terms of which the Named Operator is enti-tled to protection or coverage, then the coverage provided by this policy shall be excess insurance over and above the amount of such other valid and collectible insurance.

All other terms, limits, and provisions of this policy remain unchanged. In witness whereof, we have caused this policy to be executed and attested by our President and Secretary.

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Jon P. Diamond April D. Miller PRESIDENT SECRETARY

FORM IN1010/1008

Safe Auto Insurance Company Corporate Office:

4 Easton Oval Columbus, Ohio 43219

(614) 231-0200 1(800) SAFE-AUTO

1(800) 723-3288